For anyone whose Ilkeston flat is held on a long lease, the message is clear – if you do nothing, the property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to extend the lease.
Leasehold premises in Ilkeston with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Ilkeston can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Ilkeston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Noah owned a high value flat in Ilkeston on the market with a lease of just over fifty eight years left. Noah informally approached his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Noah to invoke his statutory right. Noah procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2013 we were called by Dr H Jones who, having completed a one bedroom apartment in Ilkeston in February 2009. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Comparable homes in Ilkeston with a long lease were valued about £290,000. The average amount of ground rent was £45 billed per annum. The lease end date was in 2099. Having 73 years as a residual term we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.
Last Christmas we were e-mailed by Mrs Robyn Mercier , who completed a purpose-built apartment in Ilkeston in August 2003. The question was if we could approximate the price would be to extend the lease by an additional years. Comparative residencies in Ilkeston with a long lease were in the region of £240,600. The mid-range ground rent payable was £60 invoiced monthly. The lease end date was in 2088. Considering the 62 years outstanding we approximated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 plus professional charges.